Sale of 45% effective interest in Asanko gold mine: Goldfields transaction with Galiano Gold to close in Q1
Goldfields expects its transaction with Galiano Gold to close in the first half of the year.
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In December 2023, the company announced the sale of its 45% effective interest in the Asanko gold mine to its joint venture partner Galiano Gold.
Giving an update of the transaction in his regional overview of the company’s performance in its annual report for 2023, Chief Executive Officer of Gold Fileds, Mike Fraser said; “The transaction was structured in such a way that Gold Fields received an upfront amount of US$85m (settled in cash and Galiano shares) with the remaining amount staggered over three future payments.
In addition, we will receive a 1% net smelter royalty on future production from the Nkran deposit once Gold Fields Results 2023 certain conditions have been met.
Production performance
Meanwhile, total production (excluding Asanko) of Gold Fields Ghana, decreased by 8% to 704koz in 2023 from 762koz in 2022.
This according to the company was driven by decreased production at its Damang minedue to the completion of the Huni and Lima Kwesi Gap pits and increased processing of lower grade stockpiles.
It said all-in costs increased by 15% to US$1,377/oz in 2023 from US$1,198/oz in 2022, which included a US$34m NRV write down of stockpiles at Damang.
The region produced adjusted free cash flow (excluding Asanko) of US$238m in 2023, 8% higher than the US$219m generated in 2022.
